Oct 19, 2026 · 1h 11m
CFTC proposes federal path for crypto margin and leverage
The CFTC’s Proposed Rules to Reshape US Crypto Markets | CFTC Chair Mike Selig
The proposals could replace fragmented state licensing with a coordinated federal framework for U.S. crypto exchanges and customer protections.
- 1Regulations CTX and CAM would give exchanges a voluntary federal route to offer margin, leverage, and financing.
- 2Selig frames SEC-CFTC coordination as essential to clarifying jurisdiction and bringing offshore-style products into regulated U.S. markets.
- 3The proposals face unresolved questions about legal authority, policy durability, and the CFTC’s expanding role in prediction markets.
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Selig explains how a voluntary federal regime could let U.S. exchanges offer margin, leverage, and financing while preserving segregation and customer protections.
The brief
CFTC Chair Michael Selig returns to Bankless after one year in office to outline an agenda built around federal exchange rules, crypto derivatives, and a more competitive U.S. market.
Selig argues that state-by-state licensing cannot provide the uniform surveillance and customer protections associated with federal financial regulation, especially after failures such as Mt. Gox and FTX.
The proposed Regulations CTX and CAM would create a voluntary federal path for exchanges seeking to offer retail spot margin, leverage, and financing under defined protections and separated market functions.
The plan depends on coordination with the SEC: clearer boundaries between securities, commodities, exchanges, and intermediaries could bring popular offshore features into regulated U.S. markets.
The hardest questions concern durability and authority, from the CFTC’s power to act without new legislation to its dispute with states over prediction-market jurisdiction.
What was said on this episode
20 statements · 14 positive · 3 negative · 3 neutral
The United States has become the crypto capital of the world.
“I believe that we've succeeded in that endeavor.”
Listen at 0:05
Well-designed bipartisan CFTC crypto rules will withstand future administrations.
“if we get that right, there's no chance that a future administration is going to withdraw all of that, and they'd be taking a huge risk.”
Listen at 0:52
Bitcoin and other crypto perpetuals trade in United States markets.
“Today, we've got Bitcoin and all sorts of crypto asset perps trading in our markets.”
Listen at 1:34
Interstate financial markets require federal regulation.
“markets need a federal regulatory scheme.”
Listen at 4:18
The United States holds approximately half of global commodity derivatives notional.
“The United States has about 50% of that market.”
Listen at 8:03
The United States has the world’s best derivatives markets.
“we've got the best derivatives markets globally.”
Listen at 8:17
State money-transmitter regimes do not reliably prevent market fraud and manipulation.
“they don't necessarily prevent frauds and manipulations that are market-based.”
Listen at 17:21
The CFTC can police fraud and manipulative trading in spot crypto markets.
“the CFTC has general anti-fraud and manipulation authority to police fraud and manipulative trading in the markets.”
Listen at 18:00
Some state agencies have extended money-transmitter rules into decentralized crypto activities.
“I do think some of the state agencies have tried to creep into some of these activities”
Listen at 21:46
Crypto perpetual markets have reached approximately seven-times leverage.
“which has been around 7x is really the highest we've gone so far.”
Listen at 37:25
The CFTC and SEC are ending their jurisdictional conflict over crypto regulation.
“we're ending that turf battle once and for all.”
Listen at 40:51
The SEC and CFTC aim to establish a coherent crypto regulatory regime.
“we want to make sure that there's a regime that makes sense.”
Listen at 42:07
Vertically integrated and non-integrated crypto exchanges receive the same regulatory protections.
“you do, regardless of model, have the same protections.”
Listen at 51:15
Expanded crypto collateral and derivatives access will unlock capital and benefit economic activity.
“I think there's just going to be a whole unlocking of capital in these markets, and that's going to be... great for economic activity.”
Listen at 55:22
The CFTC will prevent FTX-like activity in its regulated markets.
“we're not going to.”
Listen at 56:10
Selig aims to create durable, bipartisan, future-proof crypto rules.
“my goal here is to put in place something that is future-proof, it's something that's durable, and it's something that is bipartisan”
Listen at 1:04:02
The proposed CFTC crypto rules will endure across future administrations.
“I'm optimistic that no matter what, these rules will withstand the test of time.”
Listen at 1:04:46
The CFTC prediction-market dispute appears headed for Supreme Court review.
“It looks like we're tracking for the Supreme Court.”
Listen at 1:05:31
The CFTC claims exclusive authority over event-contract derivatives on its designated markets.
“the CFTC has exclusive regulatory authority when it comes to event contract derivatives that are offered on a designated contract market on one of our exchanges.”
Listen at 1:06:15
State regimes for financial order books can produce manipulation, insider trading, and loss trading.
“you get manipulation, you get insider trading, you get loss trading.”
Listen at 1:07:26
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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